discussion Anybody run their own "PC Business" willing to share information...?

[Synth]

I'm entertaining the idea of starting up a small PC business, doing mostly repair, maintenance, upgrades and selling a few custom-built PCs (between 6-10 models to limit on-hand stock and maximize purchase power).

I have a price list (for repairs, upgrades and systems, although the system's one keeps changing) and am currently building a web-presence (XHTML 1.0 Strict / CSS 2.1 and it validates at W3C, but that's another story :thumb....

I am also a business admin. university graduate, so all aspects of accounting, business law (business incorporation) and marketing are kinda covered...

Basically, what I'd like to know is :

1. Anybody making a decent living from their full-time business?
2. Anybody just doing it part-time with decent revenue?
3. Any major pitfalls to avoid, from personal experience?
4. If you do operate a small business, can you give me a sense of scale (1 man operation, or a few employees, etc...)

I have already started repairing and selling custom PCs, but only from word of mouth...

Guess I need to know if its viable before I fully commit, and if others like myself (PC enthusiasts) have succeeded...

Cheers!

 

[Cptn Vortex]

I work as sales Manager at FrontierPC, but we dont really do the big gaming and custom machines. Mostly servers and workstations to be honest, not to mention everything in between. On the side I like to spend my time building machines for friends and family, and watercooled machines as well, Wolfbane being my first major customer. I think doing it alone would have to be a side project, I dont think it will be easy or a way to make a considerable amount of money. First you need to get orders, not going to be easy. However, if you enjoy it, go for it!

 

[Rommel]

I'm entertaining the idea of starting up a small PC business, doing mostly repair, maintenance, upgrades and selling a few custom-built PCs (between 6-10 models to limit on-hand stock and maximize purchase power).

I have a price list (for repairs, upgrades and systems, although the system's one keeps changing) and am currently building a web-presence (XHTML 1.0 Strict / CSS 2.1 and it validates at W3C, but that's another story :thumb....

I am also a business admin. university graduate, so all aspects of accounting, business law (business incorporation) and marketing are kinda covered...

Basically, what I'd like to know is :

1. Anybody making a decent living from their full-time business?
2. Anybody just doing it part-time with decent revenue?
3. Any major pitfalls to avoid, from personal experience?
4. If you do operate a small business, can you give me a sense of scale (1 man operation, or a few employees, etc...)

I have already started repairing and selling custom PCs, but only from word of mouth...

Guess I need to know if its viable before I fully commit, and if others like myself (PC enthusiasts) have succeeded...

Cheers!

1) Not yet I don't.
2) Yup, been doing it since 2004.
3) Avoid scheduling conflicts, promising more than is obtainable in service and never purchase components on the customer's behalf and then charge them. If you are incorporated most Computer Sales stores will allow you to be invoiced in turn allowing you to invoice your client.
4) 2 man currently.
5) Advertise every which-way you can including on free sites/classifieds/company postings and even have a web-site. Have business cards on hand and don't be afraid to ask your client's for referrals.

 

[Squeetard]

Self employed since 1993. I do mostly IT support for commercial and corporate clients though. I built my business from word of mouth. Have yet to place an ad anywhere.

So my advice is do good work.

 

[Jack Rabbit]

I have been involved with several full time, part time, and ad hoc operations. My advice is that you run away. These business are time sinks and have almost no margin.

The biggest pit fall I have seen is competing against Wall Mart et al. You just can not make any money competing against the products (like printers; any and all printers) from these folks because of the economy of scale.

The second largest pit fall is equating fun with business. Look at the time invested in the worklogs posted on any site like this. Each person who creates their own custom creation does it for interest but if you calculate the project at even minimum wage the cost is quite high. Frankly, almost no one is willing to even acknowledge the value in this, let alone pay you for it. And do not forget that every set back costs you, not the customer.

The third largest pit fall is overly optimistic estimation. Most people severely underestimate the time it takes to fix problems or fail to take into account the other problems that they will run in to as they work.

If you want to go ahead make sure you bend your education in business to the task at hand. Rigorously evaluate your situation from the business perspective and do not buy into your own propaganda. At the very least set a one year goal and if you do not achieve it then cut your losses and run.

 

[Squeetard]

^^ Best advice you will get on this subject.

 

[BrainEater]

I agree with Jackrabbit and Squeetard.

I've been doing PC work on and off as a side project for years.

The margin just ain't there to do it as a fulltime job , and if anything will make you hate computers it's dealing with crap from ID10t users on a daily basis.

Squeetard however is correct too.If you are really good at what you do , you'll be able to build a client base thats more desireable , and you can make some fair cash.

one thing I've found : don't go cheap.I charge no less than 100$ an hour for my computer work.(except to friends of course) ...This eliminates a lot of the BS clients.

:thumb:

 

[CTA]

one thing I've found : don't go cheap.I charge no less than 100$ an hour for my computer work.(except to friends of course) ...This eliminates a lot of the BS clients.

then you wont be able to get more customers if even your business is slow...?


honestly... i always want to learn to be computer tech... to make extra money... i usually work on my friend and family for free >_>;

 

[Jack Rabbit]

even [if] your business is slow...?

Bad business is worse than no business. If you have no business you are not making money. If you have bad business you are losing money.

You do not need to learn anything to be a computer tech. If you have half a clue and the will to go through with it you can land on someone's door step and just Google your way through their problems. It might take you two days and it might win you twenty five bucks.

While this might be satisfying in the "I did it" area it is not a sustainable business model. There are some people who should get into this. It is like working at McDonalds; there are good reasons to do this but it is only a long term career move for a very small percentage of management types. However, the experience can provide you with an understanding of how the world works and how your industry works. For a student, even a failed business can be a fantastic thing to put on a resume if you spin it right.

You will never be really good at providing entry level services to ID-ten-T consumers. There is almost no profitable market for this; no matter how much effort you put in you will never make any real money. Unfortunately, consumer level computer problems are too complicated to monetise and stream line. This is a major concern with computers, right now, and something I think will take decades to address, just like the history of the automobile. If you want to go into computer consulting you should find a better niche.

 

[enaberif]

Having worked for a large local computer chain as a technician and then going to a smaller computer store I'll say this from personal experience.

I've always contemplated starting my own business but you gotta be able to offer something that other people don't offer. You could offer lower prices for bench work as thats really where your money will come from as you won't be making much money off of stuff on the shelf as you won't be able to allow stock to sit for long otherwise its money thats being used for nothing.

Personally if you enjoy doing this sort of thing and live in a house then start up something on your accord on your own time and spread the word through craigslist, flyers etc etc.

Don't bother making a website as most look so amateur that it will detract from customers wanting to come to you because a cheap site will say a lot about a store.

Certifications won't help; experience and knowledge will.

If I was to start my own business in Vancouver I know it could be successful as I'd offer something to the clients that simply doesn't exist as a market in this neck of the woods and people would be interested.

Also take this into consideration if you've never owned a company and have VERY little as collateral or even credit good luck getting help from the banks. You can't always expect your customers to want to pay cash and some may want to pay visa/debit and with those come the fees from using the machines which again isn't cheap and will cut really hard into your bottom end.